September 8, 2016 Request Approval of the Determinations to be Submitted to Rules Review Commission for Subchapter 15A NCAC 02E (Periodic Review of Existing Rules in accordance with Session Law 2013-413)

Update on the Regulatory Review of 15A NCAC 2E Water Use Registration and Allocation (in accordance with Session Law 2013-413) 3 step process Step 1: Agency determination Initial determination and public comment period Step 2: Rules Review Commission (RRC) review Reviews agency’s report and makes final determination Step 3: Administrative Procedure Oversight (APO) Committee consultation Opportunity to review final determination before it becomes effective

Necessary without substantive public interest Determinations Unnecessary Rule will expire and be removed from code Necessary without substantive public interest Rule will remain in effect without further action Necessary with substantive public interest Rule shall be readopted as if it was new in accordance with APA

Subchapter 15A NCAC 02E Five sections with a total of 27 rules Section .0100 General Provisions (2 rules) Section .0300 Registration of Water Withdrawals and Transfers (1 rule) Section .0400 Regulation of Surface Water Transfers (2 rules) Section .0500 Central Coastal Plain Capacity Use Area (7 rules) Section .0600 Water Use During Droughts and Water Supply Emergencies (15 rules)

Summary of Public Comment Period In January 2016 the EMC approved proceeding with the public comment period for 2E All 2E rules were placed in the category “necessary with substantive public interest” Public comment period occurred between January 29, 2016 and April 8, 2016 One comment on one rule was posted The commenter agreed with the initial determination

Schedule Initial Determinations, WAC – Nov 2015 Approve Determinations for public comment, EMC – Jan 2016 Public Comment Period, Feb - Apr 2016 Update, WAC - July 2016 Action to approve Determinations, EMC – Sep 2016 Report Due to RRC – Oct 2016 APO of General Assembly, 60 days, Final Determination effective – Dec 2016 Commence Rulemaking to re-adopt rules in accordance with APA

Staff Recommendation Request Approval of the Determinations to be Submitted to Rules Review Commission for Subchapter 15A NCAC 02E in accordance with Session Law 2013-413.